American Economy and the End of Laissez-Faire – 12 of 13 – The Great Cooperation

The American Economy and the End of Laissez-Faire: 1870 to World War II

12. The Great Cooperation
Lecture by Murray N. Rothbard

Public housing, planned cities, government power plants, and coerced unionism were all part of the great cooperation between corporations and government through WWI and WWII. Milton Friedman proposed the withholding tax in WWII. Statistics came into being. Cartels were created to manage many industries, e.g. railroads and food. Unions were pro-war forces. Fascism was considered great. Civil liberties were dropped. Coolidge continued as a Morgan man.

Lecture 12 of 13 presented in Fall of 1986 at the New York Polytechnic University.

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during World War two Milton Friedman the
00:02
alleged free market economists came up
00:05
of his great proposal the withholding
00:06
tax which of course that part of the
00:09
American heritage where the tax of
00:13
painlessly withheld from you and your
00:15
paycheck every month and it’s only the
00:18
use of withholding taxes the permitted
00:21
this vast enormous increase in income
00:22
tax rates pretty clear that that that
00:27
nobody would be paying up much at all
00:30
withholding taxes originally supposed to
00:32
be a temporary wartime measure soon as
00:34
World War II was over they said we
00:36
eliminate purely the emergency portable
00:38
I actually heard of that
00:40
Madison once said something like every
00:43
emergency is used by the government as a
00:45
as a becomes part of the permanent you
00:49
know instrument of power of the
00:50
government or something and I praised
00:52
for that effect and wave is that is that
00:54
true so and withholding tax by the way
00:58
one thing I’m good holding tight it
01:00
really violates the Thirteenth Amendment
01:01
anti-slavery amendment what it does that
01:03
it forces them every employer the whole
01:06
taxes from their employees without
01:07
getting paid for it I’m important
01:09
together both even get expensive to this
01:11
boy or is forced by law spend this time
01:14
but holding other people taxes poor the
01:17
unpaid course laborer for the government
01:20
and they rate this this this comes in a
01:24
world war two the income tax comes that
01:26
fortuitously just in time along with a
01:28
power reserve system the finance the
01:30
entire world war one war effort which
01:34
these guys are living we also have
01:37
statistics comes in government the idea
01:39
of government statistics with everyone
01:40
gay comes in as a economic story at
01:43
Harvard and being in the Harvard School
01:45
Business Administration comes in and
01:47
becomes live so the statistic cigar and
01:51
World War one it was so you know it’s
01:53
small and general resources amount of
01:55
money going to work very much it’s very
01:56
important the government can’t exist a
01:58
statistic they can’t plan anything they
02:00
don’t know what how’s it going on and so
02:02
statistics coming key important nodal
02:04
point for the government that you know
02:07
pour money into that you’re trying to
02:09
collect the youth and the plan
02:11
system cart allies xi want to do another
02:14
side we give you some keys and key
02:15
quotes here knows for example Harry
02:17
wheeler was present on the US Chamber of
02:19
Commerce which I said payment of being
02:21
to the federal government one of them
02:22
school of businessmen to represent
02:24
business in some sex he said the Lord
02:27
Services Committee remember the war
02:29
Services Committee well they’re in
02:31
groups of industries in a different
02:33
industry to negotiated with section
02:37
commodity section chief there were
02:41
price-fixing committees and for each
02:43
industry or they aren’t the magazine
02:46
Iron Age which is the official organ of
02:49
America Iron and Steel Institute said
02:51
them apparently it has apparently taken
02:54
the most gigantic war in all history we
02:56
should know that World War one to give
02:58
the idea of cooperation any such place
03:00
in the general economic program as the
03:02
country steel manufacturers sought to
03:04
give it and their own industry does in
03:05
other words here’s a marvelous situation
03:08
of war is just great because it provides
03:09
its instrument of cartel of a Chinooks
03:12
quo cooperation of course with
03:15
government and among industry as a whole
03:17
another thing that Hoover did I should
03:19
mention in this voluntary after they put
03:21
out millions of literally many of the
03:22
pamphlets get the pumping and the
03:24
pamphlet got the public to do various
03:26
things nothing I think was World War one
03:29
began a clean plate program everybody
03:34
should clean their place to or the war I
03:37
don’t know what it has to go to the war
03:38
effort has been there’s a method of
03:40
social control and as a method of trying
03:43
to get people linked to increase their
03:44
demand for food I guess over there I got
03:46
the quote conserved who sees every
03:50
little to do with it but friend of mine
03:53
who was a sociology professor got his
03:55
start his first job he graduated in
03:58
World War two the same thing having
03:59
World War two he got a got a sociology
04:02
job and then and World War two him in a
04:06
Department of Agriculture I guess it was
04:08
and he was engaged in a clean plate
04:10
program and they said the slow go
04:12
program was clean your plate and killed
04:15
Japs or something like that
04:16
starve a Jap a clean your plate and they
04:19
would go around spine all the garbage
04:21
can
04:22
whatever the area was while golfy thank
04:24
you make sure that the way there’s no
04:26
blue being thrown out the port of war
04:30
wastage no no waste program storage app
04:33
today clean your plates garbage on today
04:35
was a little bit it was from this
04:37
experience he conceived a total hatred
04:39
of the federal government she has to
04:41
this day
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and anybody who disobeyed any government
04:47
program with Hoover programs has been
04:50
put a stigma on a being unpatriotic and
04:52
pro-german of pro-japanese later on
04:54
whatever you know every one of these
04:58
defense contractor war contracts in the
05:01
gore production program was for court
05:04
pluses the beginning of a partner of
05:05
course doctoral where you give
05:07
guaranteed an equal any cost recovery of
05:10
any course plus or guarantee rate of
05:12
profit were beloved by these businesses
05:14
they could sit back and I’ll that course
05:15
of flow it upward and the taxpayer pays
05:18
for it this of course is now the now
05:21
that the the whole another look our
05:23
defense program to so the whole idea the
05:27
government be paying all costs plus fix
05:31
guarantee properly begins in World War
05:33
one another great contribution Rwanda
05:35
Lee the economy the week program goes
05:38
way up a week the week type price-fixing
05:40
program course keeping them keeping it
05:43
high
05:44
the government was alleged allegedly
05:46
keeping down the fleet price actually
05:48
kept it up and went out from two dollars
05:49
a bushel of fee dollars a bushel two
05:51
months was enormous increase fifty
05:55
percent increase in two months and then
05:56
after the war is over they kept a
05:58
minimum price for only don’t look only
06:01
summer of 1919 at two dollars a bushel
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to keep us from falling so it’s obvious
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and whole idea was to keep the price up
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as high as possible they also had a
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gigantic boondoggle roll on one
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colleague dropped out of the history
06:15
books called the Hart island
06:18
program uh Hog Island clamp they got a
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plant
06:21
build chips the war effort and the idea
06:26
that they had a mammoth shipbuilding
06:27
plan of Hog Island which is just swamp
06:30
looking really an island swamp south of
06:32
Philadelphia people love being a fella
06:34
where
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and they got the like the bought the
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land a land is worthless old worthless
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land a swamp I’m going out for two
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dollars an acre they sold it i mean we
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sold it to the government but thousand
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dollars an acre something I have
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enormous profit they got and they the
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whole thing is of gigantic boondoggle
06:57
the first ship that came off a box the
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end of the 1919 after war though they
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thought of pouring ships out freighter
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Oh Liberty ships and then their compete
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they’re actually competing they’re
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actually doing things peacetime form by
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1921 the whole thing by app but again
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they were closely connected Isis running
07:17
this thing with host we cannot go to
07:18
Morgan interest there were the Navy
07:21
incorporation or something like that I
07:23
have I have the Stoller stuff home on
07:24
that one I mean right this is this is an
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enormous multi-million dollar boondoggle
07:28
the whole guy on caper which our
07:31
congressional investigation trying to
07:32
figure out what’s going on and was
07:33
quietly suppress investigation that is
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another thing it begins by the way oh my
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God my heart comes to a peak around this
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period opinion for the rest of the 20th
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century the Cuban crisis in the words
07:46
again this is very similar in late 19th
07:49
century the but Cuba’s producing sugar
07:51
was a major product when I say is
07:56
imposing sugar import quotas for the
07:57
benefit of the sugar growers and
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Louisiana and the mountain state eat
08:03
sugar and it’s costly adjusting the
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quotas and so and then of course the
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Cuban the worry of a prank research
08:09
folders and all the rest of it that came
08:10
that comes to a head and we’re woman one
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also where they want to get sugar at a
08:19
certain fixed price and it says in other
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words sugar becomes a part of an
08:23
international power of play instead of
08:24
just an economic venture on the market
08:27
so the idea is to fix the price of cute
08:30
of sugar low enough the American sugar
08:32
refiners would like it but high enough
08:34
for the American sugar producers alike
08:35
it’s one of these things that can be
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changing along with what this alleged
08:40
optimum point is our Cuban tool those
08:43
days was a guy named general Garcia
08:44
minik minik cow the McTeer
08:49
the sugar mill and in Cuba along with
08:55
the Cuban he founded the Cuban American
08:57
company which kinda shook the largest
09:00
sugar estate in the world on a sugar
09:01
mill along with a Texas congressman
09:04
named Holly he borrowed ten million
09:06
dollars and VP Morgan and company isn’t
09:08
really the Morgan connections thing and
09:13
he engineered a fraudulent re-election
09:16
of the course boundaries very familiar
09:19
familiar fortunately reelection 1916 of
09:23
médicale and he was kicked out by a
09:24
liberal revolution 1917 and remembers a
09:28
liberal revolution no commie period yet
09:30
can’t blame this on communism since he
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was there since he was in with a
09:35
Morgan’s and endlessly what congressman
09:37
Holly etc momenta cow the United States
09:39
immediately condemned the liberal
09:41
revolution and accused of being accused
09:43
the Liberals of being German spies
09:45
couldn’t accuse him being coming the
09:47
were no comedy and the enemy damaged
09:49
Germany’s they were all German agents
09:51
German spies agents and the United
09:55
States that came to the support of men
09:56
account I’m gonna constantly
09:57
re-establish because men account a
10:00
constitutional government quote-unquote
10:01
for general election and I states then
10:06
shipped guns and ammunition
10:10
Manukau plus five hundred Marines US
10:15
Marines and landed in Cuba several
10:17
points in Cuba the support of Medicare
10:19
brought then I count Mac and crush the
10:21
liberal revolution the the United States
10:26
then put pressure on Cuba as a pair war
10:28
against Germany to I’m sure the Germans
10:30
and I is that what he heard that’s
10:32
severely injured by Cuban declaration
10:35
and then and we threaten them to Cuba
10:38
did not declare war on Germany that they
10:39
would they would not buy their sugar in
10:45
other words you know the sugar quota be
10:46
dumping and we wouldn’t buy any more
10:47
Cuban sugar médicale very quickly gave
10:50
in of course it said okay yes master we
10:52
will clear long as Germany and we need a
10:57
clear war
10:58
shortly after the United States then his
11:02
reason for it
11:03
Cuba had no gripe against Germany no
11:05
could see one will drive it reason was
11:06
because of the pacts and obligations
11:08
which bind us the United States a key
11:11
advisor this whole thing the key guy on
11:16
Latin American that’s got the State
11:17
Department during the war was none other
11:19
than young John Foster Dulles there’s
11:20
only about an 18 something like that
11:22
very young various but pops up now is a
11:24
key figure later to become Secretary of
11:27
State under Eisenhower and to be an
11:31
advisor at Versailles personally treaty
11:35
separate John Foster Dulles was League
11:37
foster nephew John Foster have been
11:41
Secretary of State in eighteen eighties
11:43
and then okay got men accounts a quote
11:46
request on quote voluntary yet the
11:51
United States station from US Marines in
11:54
Cuba which we then happily accepted so
11:57
that the United States sentence patient
11:58
twenty-six hundred Marines in Cuba until
12:00
1923 in other words six years almost a
12:03
semi-permanent this is true much of
12:05
Latin America that the Marines could
12:07
come in and almost any circumstances and
12:09
the excuse was that for eight of the
12:11
protection of sugar properties and my
12:13
name cross money property so and I guess
12:17
I guess it’s uh I guess it’s menak house
12:20
and Morgan Morgan sugar many cavity in
12:26
the governmental 1921 meet with marine
12:29
in support of the Marines governing by
12:32
the Kree suspending elections falsifying
12:37
votes reaping huge private profit
12:39
profits if you put I guess in whatever
12:41
was then the equivalents numbered Swiss
12:43
bank accounts you also enforced
12:50
export licenses like United States press
12:53
censorship like you know if they’ve had
12:55
the time the war postal and telegraph
12:57
censorship and that’s being odd acts the
12:59
United States NS being odd back walking
13:03
out people with alleged agents
13:04
I’m not much pretext Manukau follow suit
13:08
all this is crippled by the help of US
13:10
advisors case II didn’t know how to set
13:12
up the pastor that’s being hijacked or
13:14
set up the air the apparatus and also
13:16
cooperating all the all the edicts of
13:19
Hoover’s food administration now one of
13:21
the things that we have to realize I
13:23
haven’t had a chance to go into all the
13:24
foreign policy actions of the late 19th
13:27
century early 20th but you have to
13:29
realize all these things would be
13:30
knowing Marines are being shipped in for
13:31
example a typical thing would be this in
13:32
Latin American country borrows or sells
13:37
bonds or ball of the money can Chase
13:40
Manhattan about chase National Bank o or
13:42
sulphur bonds to American bondholders
13:46
and then they start being the full thing
13:48
so then the question is with the default
13:50
on the bonds what should be done of that
13:52
at the United States
13:54
trying to put pressure in these
13:55
countries haiti dominican republic
13:56
whatever nicaragua cetera to raise taxes
14:00
in these countries so they could pay off
14:02
the american bondholders since obviously
14:04
the people of those countries won’t have
14:06
that taxes raise a certain amount of
14:07
friction there they refuse to do it and
14:09
i think of some marines gonna force them
14:11
to raise taxes or tariffs or whatever to
14:14
pay off american bondholders so much of
14:16
the american intervention of land in
14:18
america that sort of thing the words
14:20
United States intervenes of a halfway
14:22
mark and bondholders whether bankers or
14:24
other one the force these countries face
14:26
increase their taxes and all of this has
14:31
forgotten my America I don’t think
14:33
hardly any market you know knows or
14:36
cares about Amanda Meredith what they
14:38
remember this very well so the the the
14:40
perception of the United States Latin
14:43
American relation is very different in
14:44
the region they remember each of these
14:47
interventions when they arrive they’re
14:48
bitterly opposed to it another thing
14:51
that happens in the world war one is the
14:53
nationalization of the railroads I
14:55
alluded to this little last time I think
14:57
there were quote nationalize you know
14:59
the US government took them over and the
15:01
United States government then ran them
15:02
you might think well gee they must have
15:05
a railroad interest must have opposed
15:07
this on the contrary they’re very happy
15:09
about it for several reasons the
15:12
Interstate Commerce Commission which had
15:14
been put in by the railroads and the the
15:16
railways have lost control the ICC to
15:18
the shippers by about 1900s
15:19
in other words the shippers the the
15:22
people who are the industries who are
15:25
using the railroads began to take over
15:27
and so they started studying
15:28
rates low other than high so the level
15:32
is a very bitter at the ICC during this
15:34
period they’re anxious to find a way to
15:36
go from under the ICC and then the the
15:45
way the thing was worked out the US
15:48
government nationalized the railroad
15:49
paid all the operating costs and was ran
15:51
the railroads pay the cost usually
15:53
deficits expenses and gave the private
15:57
railroads of guaranteed profit rate all
15:59
during the war so in other words the
16:00
private railroad incurred no cost is a
16:03
sandbag collected a guaranteed profit
16:05
the US government ran the America great
16:07
for the for the railroad who loved it
16:08
and then they could set the rates higher
16:11
too in addition everything else they
16:13
accept the freight rates because they
16:15
got up from under the ICC which had now
16:17
turned against their creator so for
16:19
example II the first people started
16:21
educating for this for nationalization
16:22
when the railroads themselves daniel
16:24
Willard of the head of the Baltimore and
16:26
Ohio Railroad becomes head of the
16:27
railroads our first Council of National
16:32
Defense and your Willard I’m sort of the
16:38
main railroad guy and he’s pushing for
16:40
pushing for nationalization right away
16:42
president be you know and the the
16:44
railroads are also agitated force where
16:46
they called scientific management of the
16:48
railroad which meant higher rates and
16:50
Carla’s a ssin of course so when the
16:53
federal government decided to take it
16:54
over
16:54
in 1917 one thing they did is in the end
17:00
of 1917 they guarantee to the rails a
17:04
very high profit rate especially their
17:06
average 1916 217 profit or rate base
17:10
profit rate they set up a railroad
17:16
administration and run the nationalized
17:19
railroads the official head of it was
17:21
Secretary of Treasury McAdoo of course
17:23
we know of them Morgan tool but he puts
17:27
out other things to do and he was going
17:29
secretary of the Treasury he was like
17:31
the nominal head of the railroad
17:34
administration and the the real head of
17:36
the vice-chairman it really becomes the
17:38
the basic head of of Johnny Walker hi
17:41
with chairman of the stand up a chair of
17:44
the board of the Santa Fe Railroad and
17:46
the whole whole rare demonstration will
17:49
railroad executives they would just take
17:51
any on borrowed so to speak from me from
17:53
their respective railroads that become
17:55
mine the formless so-called cabinet or
18:00
the railroad administration and they ran
18:01
the railroads and they ensured a
18:05
railroad bonanza so now for example they
18:08
set the rates for the railroad and they
18:09
raise the freight rates very high
18:11
believe which they enough for the ICC
18:12
you not only have them to do they also
18:14
did something else they really screwed
18:15
the shippers for example before that
18:18
before World War one if you were
18:22
stamping your shipping crate from one
18:24
place to another
18:26
first of all a railroad would guarantee
18:28
the time of departure you don’t have to
18:30
support a certain time second of all any
18:34
liability if your Goods got damaged on
18:36
route the railroads had to pay for it
18:38
this is the way the market worked well
18:41
meet the railroad administration meetly
18:43
started redesigning the railroad which
18:44
kept him from then on our after the war
18:46
was over – they started they said a name
18:50
of elimination of waste and efficiency
18:53
in the war effort no last jazz we’re
18:55
going to first of all we’re gonna allow
18:57
the wearer to keep keep Freight in over
19:01
here and not ship it out until each cars
19:03
loaded up fully loaded up you’re not
19:06
gonna send that half full cars because
19:08
obviously railways prefer to wait until
19:10
their shipment like a plane waiting in
19:12
silence girl love you mate wait three
19:14
days with the help so the rules were
19:18
then change our administration so that
19:20
the shippers have to wait until the call
19:22
of Allah but second of all the shippers
19:24
had to take any losses if there’s any
19:26
damage to the goods hop the railroads
19:29
and have to pay for it
19:30
this was printed as a alleged wartime
19:32
measure which obviously the river of
19:34
heart he’ll measure as a measure to
19:36
screw the shipper to the benefit of the
19:38
railroads and the railroads of course
19:39
loves it they thought the rail
19:40
administration was great see most people
19:42
if you look at it the gia railroads were
19:43
being have a sacrifice during the war
19:45
nationalised they loved it they were
19:46
their own people or running it and they
19:49
were handing it and they were consulting
19:51
with a railroad people in order to
19:52
decide which what measures to take what
19:54
rules to put in in the name of
19:56
efficiency and standardization and all
19:57
that and they also they eliminate a lot
20:00
of competition a lot of in far we’re
20:02
into real competition it’s it’s
20:03
inefficient have wasteful accomplish
20:05
those eliminate how many railroads are
20:07
on each different routes or how many
20:09
rail River Runner any different
20:10
territory
20:11
just like they eliminated different
20:13
grades or variety the products of
20:15
general but they so inefficient have
20:17
hundred fifty kinds of clothing of
20:20
heavenly 30 times things like that all
20:22
these are all this is a measured method
20:24
of reducing diversity and thereby
20:26
lowering a span of living and consumers
20:28
in order to benefit selected big
20:31
businesses like the big railroad in this
20:33
case so in other words cauterization
20:36
using the government of the instrument
20:38
this continued Adonis’s by the way was
20:40
originally illegal is unlegal eyes than
20:42
march 1918 the federal control act which
20:45
legalized the takeover so to speak again
20:47
put through by the railroad lobbyists
20:49
and the railroad administration people
20:50
working together and the spring of 1918
20:55
as they got going the amass like 25
20:57
percent across-the-board increase in
20:59
freight rates they one of them less home
21:02
I wish severe weather tried to put
21:03
through it and couldn’t do it and they
21:06
did that with no hearings rather by
21:07
usually when the government does
21:08
something any Public Utility Commission
21:10
up and they have a lot of hearings you
21:12
know this testimony didn’t do it no
21:14
testimonies did it also of course a
21:16
passenger rate increase passenger
21:18
freight rates of course with a big lemon
21:20
butter of rarer than industry so answer
21:23
after the war was over
21:24
the railroads saw like the idea to
21:29
continue on they were they were happy
21:30
they would be happy to have this
21:31
permanent what the hell I stepped back
21:32
and I was doing is I’m gonna get we got
21:34
a high profit rate in the government
21:36
picks up with operating losses but what
21:38
then would finally happened by the early
21:40
1920s or the ICC became of the railroad
21:42
nomination against the railroad Oh
21:44
allowed D nationalization to go back
21:48
under the old system except now the ICC
21:50
when a railroad dominance another
21:55
another quote from Bernard Baruch
21:56
because he hooked back on though has
21:58
experiences many businesses have
22:01
experience during the war for the first
22:03
time in their careers many business
22:06
managers say the tremendous advantages
22:08
both of themselves under the general
22:09
public a combination of cooperation
22:11
common action the cartels said we should
22:18
eliminate waste completely we should
22:20
have encouraged have the channel
22:21
supplying the man so they would meet
22:25
allocate production avoid extravagant
22:27
competition as we call it and the old
22:31
business should be governed by a federal
22:32
agency quoted duty should be to
22:34
economize under strict government
22:35
supervision such to encourage to me such
22:39
cooperation and coordination and so when
22:43
the Depression hit for example 1930
22:45
Baruch was right there with a plan for
22:48
recall Supreme Court of Industry a new
22:50
war industries board before before I a
22:52
piece in history you order something and
22:54
do the same thing a mankind McAdoo came
22:57
out what he called peace industries
22:58
board the coordinator raised prices of
23:01
strict production all the rest of it
23:02
which is what the National Recovery
23:04
administration did with Roosevelt in the
23:05
NRA simply do that Sushil eyes it and of
23:09
a series of codes production code price
23:13
code etc so that for example if you work
23:17
very much like Bismarck’s Germany or
23:18
fascist Italy in other words of see the
23:21
you remember the steel industry you have
23:22
to have to join in the steel Association
23:24
you have to obey the code set down by
23:27
the NRA steel branch or whatever almost
23:31
a duplicate of the war on the street
23:32
aboard some frankly Cardo Cardo wising
23:35
at it you have to have minimum prices
23:38
and maximum production quotas for each
23:43
each firm as a legislative trying to get
23:46
out of the depression
23:47
anytime you pouring a tumour purchasing
23:50
power to deficit but this is the is the
23:53
quarter lysing branch the head of the
23:55
NRA yeah I think rose ago I asked for
23:57
burn our bird to the head of it by the
23:59
time he’s getting old and tonight my
24:00
Daria
24:01
my buddy Hugh Johnson can do it so
24:04
Johnson was the head of the NRA and
24:07
George peak was the founder of the farm
24:10
price of 40
24:12
agriculture Adjustment administration
24:14
which is a form of approval on the
24:16
Roosevelts former club in our right of
24:17
the word farm price supports restricting
24:20
production production quotas every
24:23
product killing every third hog and
24:26
everything the hog production has been
24:27
cut by a third why wonder every third in
24:32
Korea if we take during that sort of
24:33
that this is a farm price program we do
24:38
pretty much the way that the way it is
24:39
now a creation each equally is
24:41
controlled maximum a Korea’s control
24:42
nice introduction of Polly minimum
24:44
prices headed by George P and these are
24:48
both declared unconstitutional my
24:50
Supreme Court out in 1935-36 came in 33
24:55
a last-gasp between court has an
24:59
independent body Claire he’s been
25:01
constitutional then they were a sexually
25:03
reconstructed and informally at least
25:05
the same was part of Agriculture the NRA
25:09
wasn’t but again in World War two the
25:11
same sort of thing comes in and what we
25:13
all want it’s almost good book it
25:15
Secretary of State with Josh Foster
25:17
Dulles a pop Rockefeller lawyer jf dalla
25:28
the head of the CIA which virtually as
25:33
important foreign policy and secretary
25:36
expecting those days ago order thing
25:38
nothing no inspection if everybody
25:40
wanted a head of the CIA from his
25:44
brother Allen W Dulles both the head of
25:47
the OFS during World War two leaders
25:49
that’s been our outfit in World War two
25:51
which then became the CIA to Dulles
25:55
brothers running farm policy and puts
25:57
the sister Eleanor Lansing Dulles in
26:00
heaven Bernal investor the State
26:01
Department so so we had another word
26:07
talk about a power a leap one family one
26:13
to two brothers and a sister
26:15
running all American foreign policy
26:16
pretty he’s pretty remarkable
26:19
you can’t tell me they’re the only
26:21
people qualify this is in the country
26:24
thinking about farm party so it’s a cube
26:27
right what happens after World War Two
26:28
to leap ahead worse situation is the
26:33
whole Morgan Rockefeller thing which
26:34
will go through the 20 horses of the
26:36
Morgan Rockefeller warfare and ten years
26:39
until World War two
26:40
in other words it’s all green of twenty
26:42
to thirty with Morgan more or less done
26:45
really dominant and Rockefeller is also
26:46
important with World War two and after
26:50
World War Two the hosting shift the oil
26:52
because of dominance and so the
26:53
Rockefellers take over there’s no longer
26:55
any warfare Morgan’s in our junior
26:57
partners to the Arkansas
26:58
alcohol’s are dominant and run the whole
27:00
show so what we have after world war it
27:03
is essentially the Rockefeller taking
27:04
over was not fully Eastern establishment
27:07
everybody else is a subsidiary for this
27:10
one out within that power struggle the
27:14
war is over the railroads were happy to
27:17
return the return of the private
27:19
ownership except now the ICC that they
27:22
were controlling an RTC again they’re
27:24
willing to do that and labor relations
27:30
the war war industry board and other
27:35
those a war labor policies board unions
27:39
were created in other words a
27:40
corporatist program of creating unions
27:43
in order to deal with them to deal with
27:45
a working class and sort of channel them
27:48
and their desired directions was set up
27:51
so that the war industries war war labor
27:55
policies boredom or labor board a whole
27:56
bunch of them essentially engaged in
27:59
compulsory unionization so the firms are
28:02
engaging in defense war contracts under
28:04
contract were forced to unionize of
28:06
course the deal with unions what you
28:08
have then was a enormous increase in
28:11
Union membership remember I said before
28:13
the before Lee or war one union
28:16
membership as percentage of the labor
28:17
force vary from about two percent to
28:21
about eight percent something like that
28:24
and it concentrated a certain specific
28:27
areas construction and building trades
28:30
in this anthracite coal skills still
28:33
labor craft unions but
28:36
so it was down about 3% or so if they
28:39
when the war started and because of the
28:42
world war one perfectly compulsory union
28:44
is with the federal government engaged
28:45
in members showing up to 14 percent in
28:48
1918 it was a big increase Union
28:52
membership I’m pressing that an increase
28:54
in union membership from about 3% we
28:56
didn’t sort of a norm around there to a
28:59
sudden 14 percent because of the federal
29:01
government encouragement with the S with
29:03
thee at the behest of big business
29:05
remember the big business groups the
29:07
Morgans and rock callers will run all
29:09
the rest of them I come to inclusion of
29:11
they one of the corporate test system
29:12
over the car Hawaii system partly idea
29:15
was to have union workers and
29:18
represented in unions which would then
29:20
be part of a tripartite process the
29:24
unions mean going along with the systems
29:26
that every war does the thing always had
29:28
one union representative like Samuel
29:30
Gompers people like that also the unions
29:33
were used and from socialism ins semi
29:38
prominent Socialist Party was fairly
29:40
important this period the AF of L unions
29:46
were used as pro-war to induct the you
29:51
in the labor union laborers and unions
29:53
and so she and socialist was a pro war
29:55
for spirit they used in other words to
29:58
be the pro war heads of labor so to
30:00
speak and Socialist Party of Iowa split
30:04
at the world European socialist parties
30:06
in the war started so she’s the Marxist
30:08
program for the anti was against
30:10
imperialist war for the colon perilous
30:12
Wars and and yet in every European
30:15
country the Socialist Party of Social
30:17
Democratic Party majority came out in
30:19
favor of their respective war efforts
30:21
except in the United States for the
30:23
majority of the Socialist Party and
30:26
continue to be against the war the split
30:30
of the Social Democratic Federation who
30:32
were cold became with the pro war people
30:34
interesting enough the head of the
30:36
Socialist Party a nice like Eugene
30:38
Victor Deb’s was arrested in World War
30:40
one as because he’s anti-war lock locked
30:43
up for liberation in the war effort and
30:44
later there was very little civil
30:49
liberties more one if you
30:50
I think it will oppose the war once they
30:51
got started you’re usually locked up and
30:54
the considered to be a German agent
30:58
someone so that was a lot with jail
31:01
during the war as because oppositional
31:03
war effort when the war was over Woodrow
31:06
Wilson refused to commute the sentence
31:07
refused to pardon them other guys were
31:10
subversive the Thunderer he’s to do it
31:12
Warren Harding God and his looks on
31:14
supposed progressive and hoarding a so
31:16
conservative yet than immediately freed
31:18
Debs
31:18
but the war’s over what’s the point of
31:20
keeping them fail when the NRA when
31:25
Ashley the National Recovery
31:26
administration came in in 1933 is part
31:28
of a new deal week art alive being the
31:30
economy that fight the depression not
31:32
only was the head of it George you
31:35
Johnson and Bertha person warned the
31:38
industry’s more person in World War one
31:39
all the other officials were to most of
31:41
the other people John Hancock was a
31:45
group of old friend of Baruch and
31:46
co-author of a group wizard big shot on
31:49
the NRA 1933 he was at a master General
31:53
of the Navy in World War one ahead of a
31:55
naval industrial program for the world
31:57
war industries board dr. Lyon woman of
32:02
the head of the production of statistic
32:04
division of war industries more than
32:05
became a member of the NRA and also the
32:09
war life of National War labor which the
32:12
NRA also set up the National Labor Board
32:15
you remember of that there’s a whole
32:19
bunch of them it just goes on and on
32:20
whole bunch of these people who have
32:22
been in world war one war industries
32:24
board food administration they will rush
32:27
back in on the New Deal period but they
32:28
really cuts up through the ranks of the
32:29
New Deal 1933 what do they love it they
32:33
this is that we’re back in action also
32:37
they kept using war terminology during
32:38
the New Deal period other words than
32:40
that when they reconstituted a little
32:41
stuff they would park back consciously
32:44
the World War one day for example
32:45
Roosevelt said I don’t share any of
32:48
these doubts on and on the NRA and a
32:50
National Recovery administration he said
32:52
quote I have I took part on the great a
32:54
great cooperation in 1917 in 1918 and
32:57
and there’s my faith that we can count
33:00
on our industry what’s more joining our
33:02
general purpose to fight this new threat
33:06
new threat being a depression the words
33:07
Germany’s one threat especially another
33:09
thing all consider the same sort of
33:11
things on the level the eyes the blue
33:15
eagle insignia they’re all right which
33:17
is put in by Rhodes archers taken from
33:20
the old Herbert Hoover who
33:21
administration suggests that the
33:22
Roosevelt by Breuer and as baroque said
33:27
about the using this old method of logo
33:31
or symbol symbolizes this cartellis our
33:35
caliphs battle he said quote said Baruch
33:38
but it’s commonly understood that those
33:40
who are cooperating our soldiers against
33:42
the enemy within and those who are those
33:44
who own it to act on on the other side
33:46
there will be little hanging back other
33:48
words just as this is the anti German
33:50
forces abiding by war to administration
33:53
regulations had their insignia of the
33:56
show they’re part of this fight and so
33:57
the those who put the blue eagle of the
33:59
New Deal on their on my windows were
34:01
also part of the great fight the enemy
34:03
within being whatever being unemployment
34:04
or whatever you want to call it also the
34:10
conscription comes in a World War one
34:11
additional income tax
34:14
Federal Reserve System conscription
34:16
comes and of course them grass people
34:18
for the war effort and using a very
34:20
similar techniques the the idea wasn’t
34:25
going to have local citizens unpaid so
34:28
doesn’t do the drafting so it’s the
34:30
mobilizing so instead of thinking it’s
34:32
the central government who were drafting
34:33
people it’s a local board local
34:36
Selective Service Board who are doing it
34:38
were and then becomes sort of again
34:41
unpaid agents of government on paying
34:43
enforcement agents in the same way the
34:47
NRA had a local compliance committees
34:49
that go out and make sure everybody’s
34:51
got my blue eagle and that advisor on a
34:53
blue legal decisions that weren’t so on
34:55
they’re made up of a quote best people
34:57
unquote on the community whatever that
34:59
means respectful responsible citizens
35:01
for things things not hippie types those
35:05
will be be trust that they go along with
35:07
when the government at all times this is
35:12
peak rights of that George Keegan not
35:14
her memoir by George P
35:16
we head of the AAA it was also
35:18
originally the part of work in the
35:20
street war Lauber Luke’s people she set
35:23
the hen I mean Pete with his war
35:25
experience war torrente meaning in the
35:27
war industries board course this whole
35:29
thing clicks in the shake and some of
35:33
the fine men of the country are coming
35:34
to his call as they did a 1917 over the
35:37
same high purpose this time fighting
35:39
oppression quote unquote were the same
35:41
kind of cartel west vision no were
35:46
publicly she remember was set up by the
35:48
Morgan partner Willard straight as their
35:51
intellectual arm of course also hoop
35:54
stood up for the war effort
35:55
like most these guys were calling for
35:57
war with Germany long before Wilson
35:59
actually asked for Teddy Roosevelt was
36:01
kept accusing look at me a coward for
36:04
not not declaring war you know by 1914
36:07
much less than nineteen seventeen and so
36:10
the intellectuals poured into a
36:11
government of the same apologist
36:12
propagandist and planners both from the
36:15
war and and again like in the New Deal
36:17
period in the word it’s a very similar
36:19
kind of situation they learn them and
36:21
World War one than they contain it on
36:23
new do I’m gonna get him World War two
36:25
the same almost the same people he was
36:27
twenty years later the New Republic also
36:30
said for example Herbert Crowley’s
36:32
editor in public looking back on the
36:35
wars you what do they love it I said
36:37
during the war we revolutionize our
36:39
society I guess in a sense they did they
36:41
made a much more status and
36:43
collectiveness phrase I permanently
36:46
John Dewey a great philosopher Russell
36:48
philosopher called me University and
36:51
founder of pragmatism and somebody
36:54
socialists than everything else so that
36:56
the war was great because during the war
36:59
we learned to produce for property for
37:01
uses that are producing for profit and
37:03
ignoring the fact what these guys are
37:04
making lots of money out of the war
37:06
effort than anyway so John Dewey was
37:09
meeting the March and progressive her
37:11
pragmatism intellectual Taylor the war
37:15
old Dewey’s disciples he talked about do
37:20
we talk about the power of war to force
37:22
concert of effort and collective
37:24
planning the war the great thing is it
37:27
means that everybody is force
37:28
together and collective effort this
37:32
sounds very much like – like with
37:34
communists we’re saying I guess true
37:37
purposes not much not much difference
37:40
however Carly the editor who a public
37:44
progressive intellectual author of Teddy
37:49
Roosevelt major theoretician and guru VP
37:53
Morgan’s major financial backer and
37:57
almost a beautiful circle you see what
37:59
happens is the newer Morgan partner sets
38:03
up the New Republic publishes that Koli
38:06
the editor Koli is a major very
38:08
efficient for Teddy Roosevelt himself
38:09
was a Morgan tool with life
38:12
founder of the idea that God would what
38:15
he called the new nationalism
38:17
Hamiltonian well Tony’s Lisa Jefferson
38:19
was a bad guy could ever the favor of
38:20
Liberty and free market and minimal
38:23
government Hamilton was a great guy
38:25
family favor big government government
38:27
industry partnership you know all the
38:29
rest of this stuff
38:29
Holy Father the think Simonian socialist
38:32
was a yeah I think money was a believer
38:36
unless well if you say to money is an ad
38:39
stating truly imbibe dresses his father
38:43
and then continuing on like a Harvard
38:45
learned about pragmatism and all that
38:47
the but final was stuff and the one
38:49
waiting here rotten synthesis those of
38:53
being valued free in this thing he they
38:55
weren’t valuing free they are that Rex
39:00
hug well I’m the collectivist economist
39:02
and one of the big people in New Deal
39:06
Perry the leader the so-called
39:08
collectivist wing of the New Deal when
39:10
you talk about collectivist thing
39:11
mentoring in the New Deal be dealing
39:12
with very subtle distinctions here any
39:14
rate for expert guide tongue well I
39:19
guess in Department of Agriculture but
39:21
he’s one of the so-called brain trust
39:23
the New Deal period he wrote about World
39:26
War one looking back on it 1921-22 he
39:31
said she was a great war and he talked
39:33
about America’s wartime social of them
39:35
he hailed up as being great it was
39:37
social the only thing we have to realize
39:38
it wasn’t call of Perry I wasn’t Marsha
39:41
one owner was it was big business this
39:44
corporate is social is a big business
39:45
big government collaboration and big
39:48
union creation Newberry Union and he
39:52
said there’s a purple thing the war
39:53
anyone who did that’s all I mean mostly
39:56
people didn’t really come out flatly and
39:58
say this they believe this and if I have
40:00
a role of say it’s too bad the war ended
40:02
as early as 1918 because if he said
40:04
quote only the Armistice in November 18
40:08
only the Armistice prevented a great
40:09
experiment of control of production
40:10
control of pricing for consumption in
40:13
other word prevented sort of
40:15
establishment permanent collectivism and
40:18
said during a war to Tugwell competition
40:21
the old system of competition had quote
40:22
most of the way in the free a new heat
40:26
of nationalistic vision unquote so and
40:31
it then of course Melissa Lee knees
40:33
fascism came in and Evelyn in 19th early
40:36
1920s all these guys love them how do I
40:38
love the Herbert Crowley love that you
40:41
read the New Republic
40:42
very instructive go back and read a New
40:44
Republic who’s never late nineteen
40:45
twenties
40:46
Coley was duly editor they loved
40:49
Mussolini fascism was great because the
40:51
fascism has now achieved and peacetime
40:53
what the World War why not achieved in
40:56
wartime what the United States and
40:58
Britain a cramp except if Germany is to
40:59
you in wartime Italy it finally
41:01
established permanently triadic
41:04
corporate state system of national trade
41:07
association simple planning fixing a
41:10
production and prices and all the rest
41:12
of it a practically factor of civil
41:14
liberties have to go by the boy didn’t
41:15
really care not much of that who cares
41:17
about civil of these people far away and
41:19
they didn’t care about the would be much
41:21
United States much less live in Europe
41:22
so Italy became a favorite big
41:25
businessmen lover crashes Italy liberal
41:27
was love fascist Italy until about 1935
41:29
I wasn’t fully onion Ethiopian war when
41:34
foreign policy got in the way mostly he
41:36
was beloved in New York time the only
41:38
other organs of established opinion what
41:41
making you feel like thinking I think
41:43
opinion a writer at scribblers magazine
41:49
hailed the world war one they said
41:54
pressors at all countries the United
41:55
States and all of moron country but get
41:57
those professors in all countries quote
41:59
for today good weren’t really on the
42:01
front line they fought the sense of
42:03
being in Washington or Berlin or
42:04
something they fought and they managed
42:06
affairs
42:07
thus refuting the ancient libelous
42:09
assumption that they constitute an
42:11
absent-minded third SEC I’m Chloe so
42:14
they’re really much show the professors
42:16
who they can be much are they being out
42:17
there and planning and coercing like
42:19
everybody else that’s great for
42:22
accomplishment the another thing that
42:29
starts in World War one left several
42:30
other things start should be mentioned
42:32
the idea of public housing federal
42:33
public housing begins in World War one
42:35
with Franklin Roosevelt and Navy
42:37
Department building naval base housing
42:40
getting the idea of that government damn
42:43
government electric power starts in
42:45
World War one there as part of them the
42:47
muscles muscles show nitrate plant kind
42:50
of see which starts the idea of a TVA
42:53
later at the PVA during the 1920s it was
42:56
pushed by Hoover the idea of a dam what
42:58
government electricity government dams
42:59
in them Muscle Shoals and also of course
43:02
in Colorado River in Las Vegas for thee
43:06
which used to be I thought you getting
43:08
out what its main now I kept being
43:09
renamed forgotten now these are the
43:12
boulders I think it’s a boulder they’re
43:13
gonna Democrats got and they called the
43:14
bulgar they who the publicans got in a
43:16
rename of the Hoover exam number craps
43:18
event change I guess is Boulder now
43:21
here’s here’s an example of government
43:23
operation and a little bit of socialism
43:25
for the speak you think they’re for the
43:28
private electric companies would be
43:29
against it they were not against it I
43:30
would like to come you always been in
43:31
favor of government electric power plant
43:34
well why because what happen well for
43:35
one thing the government builds the
43:37
plant at taxpayers expense provide cheap
43:40
electricity subsidizing electricity
43:43
users of taxpayer expense and they
43:45
usually in private electric companies
43:46
and buy the electricity from the
43:48
government our dams and we sell out the
43:50
consumer they love it it all depends is
43:52
the idea that business what a man take
43:54
dislikes governor’s an intervention is
43:56
totally incorrect from what should be
43:58
one of the key lessons of this course
43:59
that they almost he’s almost the
44:01
opposite the depends again what they’re
44:06
doing so here if it had situation in the
44:07
government for
44:08
running cheap our electric company past
44:11
spec Roosevelt when he when he set up a
44:14
PVA a Tennessee Valley Authority in 1933
44:17
or so said he Hornbeck a World War 1
44:19
experience said the World War one the
44:21
war the power the power development of
44:23
the war days and PVH Tennessee showed
44:26
that leaves logically were as he said
44:28
the national planning so it all started
44:30
with its wartime wartime precedent also
44:33
the another thing which starts in World
44:34
War one with Gordon the so-called Garden
44:38
City development Wow beginning of the
44:40
Garden City concept where government
44:43
public housing government build plans
44:44
cities this is what they did it New
44:47
Jersey Delaware and Connecticut this is
44:54
a base on the a crazed housing theories
44:59
of a British election you buddies or how
45:02
are you the idea is everybody should
45:04
live in a planned city it should be a
45:06
certain amount of open space trees
45:08
gardens everywhere and all of this
45:10
nonsense but you’re led to essentially
45:12
World War two public housing
45:14
developments which we’re only now
45:16
getting away from was the architectural
45:18
theory everybody supposed to live in a
45:21
way the architects think we should live
45:24
it’s finally being beaten back by hard
45:27
experience for example you won’t want to
45:29
live in Gordon cities I’d like to live a
45:31
neighborhood they like that they hold so
45:34
the whole idea that a few people left
45:37
weighing architects put the plant where
45:38
everybody’s gonna live but he begins to
45:41
take rue the world wall and it’s not
45:42
very much but the seeds of it begin
45:44
there as I say it sprouts until about
45:46
the 6070 nineteen sixties I think it was
45:50
Jane Jacobs right the magnificent book
45:53
which I recommend everybody call them
45:55
risin risin full of American city which
46:00
he said she packed this whole idea of a
46:02
planned city and a plan housing
46:04
developments of being rotting of mother
46:05
most of the terrible social consequence
46:07
and they say unions grow and enormously
46:10
for war as a result of those coerced the
46:15
Franklin Roosevelt who was a was part of
46:17
the labor secretary Navy and charged
46:20
with a navy Navy Department late
46:22
policies one of the leaders in this
46:23
course unions and again he learned from
46:25
that to put into effect and put in the
46:28
in the NRA in 1933 and then the Wagner
46:30
Act 1935 and the idea of course unionism
46:34
so the war was over most these guys
46:37
fought like hell to keep Lee keep the
46:39
system going you know the war was over
46:41
Beru Quantic opinion with Hoover want to
46:44
continue it but there’s some extent it
46:46
did contain until the summer of 1919 the
46:49
wheat price was kept up by the federal
46:52
government all of June or July 1919
46:54
finally it Peters out for one thing
46:59
Wilson was secretary Baker Secretary of
47:01
War was sort of favor the free market I
47:03
mean I’ve been against continuing and he
47:05
really thought you just you only be for
47:07
wartime and so he led the idea of
47:10
getting rid of it one of the things is
47:12
we remarkable thing with the government
47:14
that the government created a government
47:15
Union this is a remarkable point which
47:19
is been overlooked by most historians
47:22
and though the number of industries in
47:25
the West the forest and West were most
47:27
of the Union to the extent they were
47:28
unionized or in the hands of the radical
47:30
anarchist Union called the Industrial
47:32
Workers of the world I ww-what so left
47:35
my anarcho-syndicalist I got to be able
47:37
actually described by industrial workers
47:39
in the room with strong in the logging
47:42
industry in the northwest and the lines
47:44
and the lumber in general in Idaho and
47:48
Eastern Washington in Washington State
47:50
and things like that so since the IWW of
47:55
the anarchists were against the war
47:56
against that dream of a war there were
48:01
striking and creating problems for the
48:03
government the federal government set up
48:05
at the only longer is Union it’s a
48:07
pretty remarkable situation development
48:10
in the summer of 1917 the government set
48:14
up the the loyal legion of loggers and
48:19
lumber man it’s so-called 4l movement in
48:23
the so called Union headed by a general
48:25
the first time any general is in heaven
48:27
but general name of Bryce disk so we had
48:31
army officers generals on horses running
48:33
in a so-called Union don’t write this
48:40
anyway so this is a government Union
48:44
organized by the US Army and in which
48:47
they were lumberman more or less Dragoon
48:50
Micah post by force in other words
48:51
personal the IWW is outlawed leaders
48:54
were rounded up in jail for the rest of
48:56
the war and later and sick of worldly
48:58
lumberman were sort of dragoon into this
49:00
into this organization the Forel
49:02
movement the so it’s all organized by
49:07
the US War Department thought it was
49:08
cold land and November 1917 it was
49:13
headed to Macomb white this general yet
49:15
he became a general later
49:18
colonel disc and a whole bunch of about
49:19
a hundred army officers organized this
49:20
Union and the was the coldest for El ISM
49:27
and a Signal Corps division of ten
49:32
thousand men were assigned to it sort of
49:33
run it sort of headed up and make sure
49:35
everybody was in that’s a looking at and
49:38
they were guys lumber at camps under the
49:41
Army in the Signal Corps and they
49:43
purchase lumber and also their baby
49:45
really become part of a leading light
49:48
and lumber industry they imposed an
49:50
eight-hour day on a lumber instigated
49:51
one of the unions are fighting for an
49:53
eight-hour a day that I guess was ten
49:55
hours so the army decide to impose it
49:58
and so we have the arming Union running
50:01
the the end number industry and ordering
50:03
the lumber operators to have an
50:07
eight-hour day innuendo and to bargain
50:10
with a so called Union and they
50:12
established a minimum wage for a lumber
50:14
industry and they had they had the
50:16
improve working conditions and whatever
50:18
and and then they had a bill empowering
50:22
the president the sees any Miller or a
50:25
lumber camp and refused to abide by the
50:27
Union regulations it’s really like a
50:29
government Union which are only Union
50:31
which then I’m essentially ran the
50:33
industry by the end of the war therefore
50:37
L woman the logger
50:38
Royal Legion longer moment had a
50:40
membership 120,000 membership really
50:42
customers the entire lumber industry
50:44
United States every union member had to
50:48
sign a loyalty oath the oath when as
50:53
follows
50:53
i the undersigned by in consideration my
50:57
being a member of the will legion of
50:58
loggers on lumbermen do hereby solemnly
51:01
pledge my efforts during the war to the
51:03
united states of america and will
51:05
support and defend this country against
51:06
enemies both foreign and domestic I like
51:08
that domestic what is a domestic enemy
51:10
so if anybody was opposed to the war
51:11
effort the one thing anybody doesn’t
51:14
obey the Union Army – Union regulation I
51:17
further agree by these presents to
51:19
faithfully perform my duty tour this
51:21
company it means whatever company
51:22
they’re working for by directing my best
51:26
efforts in every way possible to the
51:27
production of logs and lumber for the
51:29
destruction of army airplanes and ships
51:31
to be using as our common enemies you
51:34
notice this is essentially coerced
51:36
intensity forced labor forced labor
51:38
situation here and then I will stamp out
51:41
any sedition or acts of hostility at the
51:43
US government which may come in to my
51:46
knowledge I will do every act and sing
51:48
which will in general they eat in
51:49
carrying this war dough successful
51:51
conclusion so these are the labor
51:53
conscripts speak and lumber camps and
51:59
and they and then Colonel disken he
52:03
began to begin to think of this well the
52:05
heck of the war after war is only
52:06
beginning we this is gonna be a
52:07
permanent labor market in this country
52:09
words we can organize all the working
52:11
force to a loyal legion of whatever it
52:14
doesn’t have to be only a lumberman to
52:15
obey the government to obey the
52:18
corporatist dictates
52:21
they said this is the end of class war
52:23
see this is weekend guys we’re gonna
52:24
have class harmony now are they called
52:26
4l ISM using terms in further the
52:31
philosophy of the way of life
52:34
labor-management relations for Ellen
52:36
when asked for all of them and they
52:38
wanted to continue in em from when the
52:39
war was over for unfortunately for us or
52:43
unfortunately for them the end of the
52:46
warm at the end of coercion it couldn’t
52:48
have been no longer how people joining
52:49
you you know you began to die out so
52:51
by 1930 a cook at enol during the 1920s
52:55
by 1930 they only had about a few
52:58
thousand members they’re gonna get
52:59
pinyin in business for about 12 years
53:02
after the war was over more than that
53:04
and the New Deal came in the 1930s for
53:08
Ella’s and Reviver and the CCC camp the
53:11
coop the something Conservation Corps I
53:15
think citizens which is sat by the New
53:20
Deal that solves a problem unemployment
53:21
point unquote the way you solve your
53:23
problems unemployment even get people
53:24
into the end of the government service
53:26
the idea was citizens come Civilian
53:29
Conservation Corps excuse me that’s what
53:31
it was Civilian Conservation Corps sunup
53:36
a 1933 to combat the depression the idea
53:39
is you take unemployed used for the
53:41
cities and get them out under the
53:42
healthy climate of a country and get him
53:43
to chop trees or those lambs wherever
53:46
and the new dealers loved us it was a
53:50
great thing it’s a way of military
53:51
especially militarizing labor force of
53:53
bringing in a whiff of the army it was
53:56
really a run by the army US Army and the
54:01
theory that one of the theories was for
54:03
example quote to mobilize the unemployed
54:05
youth into a forestry army that forth
54:08
meaning to train them for any future war
54:10
effort so leave them in the Second World
54:14
War shipbreaking apathy to be a core
54:17
cadre they were equipped the CCC people
54:20
even though they’re technically
54:21
civilians were put in army camps arming
54:24
type camps in the country they were
54:25
equipped with army type uniforms they
54:28
were gathered an army of recruiting
54:29
stations they’re living in army tents
54:31
and they were running essentially by the
54:34
US Army the guy who was the head of it
54:36
was a guy named Robert Fechner who was a
54:38
former world of war labor leader the
54:40
former war labor board again bringing
54:42
you know bringing harking back to the
54:43
World War one experience richard te ly
54:49
one of this one of the last books i
54:53
think he lived only asia for liking
54:54
their late thirties pretty pretty old by
54:57
this time founder a progressive economic
54:59
summary measure Richie Ely right by the
55:01
way Richard te Lee was also post
55:02
millennialism high assess
55:04
also believe a government of God major
55:06
instrument of redemption the citizens in
55:10
the world for government anyway 1931 to
55:13
come at the depression Ricci te leaf
55:14
writes of the book we proposes a
55:16
peacetime army notice again the military
55:18
connotation the peacetime army
55:21
recruiting the unemployed to be directed
55:23
poco by an economic general was staffed
55:25
and this army coach should go to work to
55:28
relieve the stress with all the vigor
55:29
and resources of brain and brawn that we
55:32
employed in the world war unquote
55:34
again you have a mighty MIT alliance of
55:36
militarism intellectuals and corporate
55:40
state because I mentioned horrible
55:43
industry began as very small began and
55:45
bicycle shops the bikes the bicycles by
55:49
the way are an important harbinger of or
55:52
if you’re interested in this here is a
55:53
very good book by Hank show David
55:54
Hentschel Cole from American systems of
55:56
mass production and it talks about great
55:59
importance in the 1890’s of the bicycle
56:01
industry before that the bicycle was
56:06
remember her old movie to shave like
56:08
this and you stand on top of this very
56:13
big wheel it was unsafe first of all of
56:16
them you couldn’t go very fast second
56:17
one kept falling over so it was only
56:20
used by people that small number people
56:22
sort of aficionado then some guy in
56:25
England event of the safety bikes what
56:26
was then known as a safety bicycle which
56:30
we know and love today and I’m going
56:31
evil wheels and chain actual system
56:34
linking them up so as a result of this
56:39
invention of the so-called safety
56:40
bicycle which is imported the first big
56:42
bicycle manufacturer United States which
56:44
they say bike was running hope a bicycle
56:48
company and the bikes was a big boom I
56:50
had two figures at home a big boom in
56:52
1890s I think a huge number and like
56:53
millions of bicycles per year was so of
56:55
about ten year period and the thinking
56:58
about bicycles was technologically it
57:00
got people used to got technicians and
57:03
craftsmen and mechanics used to the idea
57:05
of the rubber tire and the axle and the
57:08
axle wheel rubber tire
57:09
complex which hadn’t been really done
57:12
before before the wheels were railroad
57:15
wheels and they didn’t have rubber tires
57:17
and have this hole
57:19
secondly you got the public used to the
57:21
idea of mobility in other words of
57:24
starting one point that you prefer and
57:26
going another point you throw that
57:27
slumping now the railroad terminal and
57:29
waiting for the schedules in other words
57:31
in railroad transportation means you go
57:33
down and the terminal it’s fixed kernels
57:37
and fixed tracks and fixed time you go
57:39
there and you walk or take a horse and
57:41
carriage or something
57:42
or some buggy the rest of the way so so
57:45
people transportation before 1890s was
57:49
over a land was was fixed time schedules
57:52
and and fixed terminal all of a sudden
57:54
little bicycle people got used to the
57:57
idea of individual track individually
57:58
controlled transportation going anywhere
58:01
you want and that’s the fixed term oh
58:02
there’s only whatever time you want the
58:04
boot stopping along the way and all that
58:06
other words total individual control and
58:08
mobility of transportation so the
58:11
automobile came in that was a pave the
58:13
way for the automobile in two ways one
58:15
technologically the actual wheeled
58:17
higher tech techniques techniques and
58:20
two philosophically so to speak and the
58:23
words people God uses they wanted to
58:24
have more of us want to be able to drive
58:26
faster and then and will laugh and but
58:29
so the same idea of individual mobility
58:31
then it’s picked up of course of the
58:33
automobile originally all of the other
58:35
civil with made either and bicycle old
58:37
bicycle shops old blacksmith shops or
58:40
old carriage manufacturing shops there’s
58:43
only a few a year and a few a month or
58:45
whatever or it’s small and it’s very a
58:47
huge number won’t be able to point at
58:48
firms
58:49
hundreds and he’ll be on three which
58:51
which which came in and then collapsed
58:54
and whatever and at first it took a
58:55
world kind of find the economic way to
58:57
do it most early automobiles were
59:01
extremely expensive and for rich people
59:03
all the way in the eye and sort of a
59:05
plaything for the rich if you were asked
59:07
her or Vanderbilt you gotta want to be
59:09
over or whatever twenty thousand dollars
59:11
whatever was and there were very fancy
59:14
there were there were beautiful or hand
59:16
tool whatever it is you know and then
59:18
all the rest of it as antique low and
59:20
being lovers can attest but they weren’t
59:22
an economic factor and the thing which
59:25
gave rise to the dominance Henry Ford
59:28
then one of those genius
59:30
whether he’s the first guy to say look
59:32
how loved his plaything in the rich
59:34
stuff I want to make it all and be up
59:36
for the general public I don’t deal for
59:38
the masses but do that’s got to be cheap
59:41
both thrills that’ll be chief is going
59:43
to be there for a very low cost and lots
59:45
of them and so the whole idea was afford
59:48
them with the gear they’re gonna be all
59:50
with a mass product and this is why the
59:52
Ford Motor Company grew from a small
59:54
blacksmith shop going mighty 4 million
59:57
car a year outfit so going along that
59:59
line it was for who then said well if
60:03
it’s gonna be a given product first of
60:06
all from a uniform product it’s not
60:08
gonna be hand to hand crafted and he and
60:11
it was really for the Native American
60:12
industry to the fullest extent the
60:14
modern concept of the mass production
60:16
and interchangeable parts
60:20
that’s interchangeable parts each and
60:22
which is manufactured to fit together
60:23
not by the craftsman up by hand fitting
60:26
with by machine men with machine
60:27
produced interchangeable quartz it was
60:30
because of that of Ford was able to turn
60:32
out mass production and cheap product
60:35
and uniform the uniform products and the
60:41
as ole is hope organization of geared
60:44
toward this end and to as I say there
60:46
was a cheap a cheap car and therefore a
60:50
little cheap low cost car it used to be
60:54
thought back in the 1920s a Ford really
60:57
invented mass production and it’s called
60:58
Fordism so during nineteen twenties and
61:01
early thirties there were arguments out
61:03
its Fordism good or bad and then it was
61:05
the revisionist came along said that it
61:07
wasn’t before didn’t really begin mass
61:09
production was really begun on the
61:10
nineteenth century way before that the
61:13
McCormick Reaper and the Singer sewing
61:15
machine from the arms production
61:17
now however with the house show book is
61:20
a revisionist
61:21
he goes through three detail analysis
61:25
woman’s eyes he comes to inclusion a
61:26
four really didn’t invent mass
61:27
production in the modern sense back to
61:29
Ford in other words because he said in
61:32
the core making all these guys it’s true
61:33
there was a large production and as
61:36
interchangeable parts and one set but
61:38
they were interchangeable parts was not
61:39
matte machine produced there will fit it
61:41
together by hand craftsman so we took
61:43
the part
61:43
fit of them so it wasn’t really what we
61:45
consider modern mass production truly
61:47
begins with Ford
61:49
so we then we have with forefoot then
61:52
invent the assembly line a part of this
61:54
process and there was the assembly line
61:55
then makes it much much quicker did you
61:57
have the thing rolling it takes a
61:59
factory and loads it up to the highest
62:01
point to the speed there’s not only do
62:03
you have every old people and wall
62:05
materials and whatever concentrated in
62:07
one spot is what happens with a factory
62:09
you also have a moving assembly line
62:11
which which rolls on and then uniform
62:14
things had done to it and the car comes
62:15
out at the end and so Ford begins mass
62:18
production he has enormous I think was
62:20
1913 we a little later we see those the
62:24
the River Rouge plant which is the
62:26
mightiest mass production factory ever
62:29
built up in that plant think maybe even
62:31
since I think it was 1913 the River
62:36
Rouge he handicap but he kept doing a
62:40
nice keep reducing the amount of time it
62:42
takes to produce one car in other words
62:44
he started I think when he started this
62:46
mass production it took 13 hours to
62:49
produce one car like one car coming off
62:52
the assembly line every 13 hour and then
62:54
it was he kept improving and getting
62:55
bigger and more mechanized it got down
62:58
to an hour and a half three hours hour
63:00
and a half an hour quarter finally by
63:02
the 1920s was down to a minute a car per
63:04
minute in other words the maximum point
63:06
of the River Rouge plant one car coming
63:09
off with Emily lines per minute
63:10
magnificent achievement okay so for that
63:13
takes over the automobile industry
63:14
becomes a dominant force by this kind of
63:17
innovation from 2% of the numbers became
63:21
he went out to about 50 60 percent of
63:23
the industry by 1914 or so he was
63:27
advantage there were two large companies
63:29
at that point as the as the Ford and
63:32
other people kept growing and the other
63:33
rock kept dropping out for example the
63:34
electric car the steam car and the world
63:37
electric cars the theme part
63:38
unfortunately didn’t accelerate very
63:39
well expensive I think seller right very
63:41
well oh I should say before I get to the
63:44
other farm the other innovation of
63:47
Ford’s before I had two great
63:48
innovations one was the whole concept of
63:51
mass production interchangeable parts
63:53
all that in some way moving assembling
63:56
on the other one
63:57
of marketing this is important
63:59
production in order to sell us stuff I
64:02
mean order producers dive doors have to
64:03
sell it so it’s for that really
64:05
developed the idea of branch of branch
64:08
supply plants of mass distribution
64:12
plants of life’s franchise dealers who
64:16
sell a car a retailers and then can turn
64:18
back the amount to the home sale and the
64:21
whole sales of manufacture except it was
64:22
accreting the whole worldwide marketing
64:24
system the solar cars because if you
64:27
distribute if you produce a million
64:28
couple of million cars EA oh that’s a
64:29
soul limit so that the whole marketing
64:31
mass marketing process was developed by
64:34
Ford – so with an enormous achievement
64:38
and again he started I think he I
64:41
started poor something I got a horatio
64:43
alger concept I got where he grew up
64:45
I put the wound up in Michigan very
64:48
early apprentice and all that I think he
64:51
was apprentice bicycle machine shop
64:53
person again again gets plowed back
64:55
profits borrowed money from relatives
64:57
and politics and prophets had nothing to
65:00
do with the bank’s mattifying to till he
65:02
died correctly nothing to do with Wall
65:05
Street bankers as a result his political
65:07
views were not for not part of the
65:09
establishment is the maverick type in
65:12
general until his grandson took over in
65:15
his Benson was in with a Wall Street
65:18
banks and really changed his viewpoint
65:20
to sort of liberal Republican or
65:22
moderate public I guess official
65:24
establishment of view any rate the other
65:27
company was growing up fast by 1930 1980
65:31
was General Motors which grew up by
65:33
merger in other words it really instead
65:35
of developing by innovation and by
65:38
productive productive work so to speak
65:41
it merged a whole bunch of other
65:42
companies Buick all these things which
65:44
we now think of as divisions of General
65:47
Motors originally independent companies
65:48
olds and but different manufacturers
65:52
sold and be awake mister Buick and the
65:54
Packer in watts or Scott and and they
65:57
merged as a DuPont and the merger will
65:59
make she’s me emergent of General Motors
66:01
the merger being promoted by Morgan one
66:07
of these merge merge merge ease merger
66:10
persons
66:11
named Charles Stewart lot I forget he
66:16
had I think he originally had a what he
66:19
had he had an actual company or
66:21
something
66:21
my company they merged in the General
66:23
Motors around this pre-1915 yourself
66:25
some and mr. champion had the champion
66:28
sparkplug companies I think came to our
66:31
gentle motor Oh MOT that sense own Flint
66:36
Michigan he only died a few years ago
66:37
age of ninety or something and he had he
66:41
happen yeah you know I got an a hundred
66:43
thousand shares have shown motors and of
66:46
course that developed over the years the
66:48
virtually own Flint Michigan the whole
66:50
pan of Flint of City is funded
66:51
essentially must mutts Vil and he’s got
66:54
a got a statue tomahto
66:55
whatever his son Stuart models a big
66:59
left winger air and attributable money
67:03
left-wing causes so do rayon five by
67:05
1919-1920
67:07
we’re getting gentle motors when the
67:09
point of collapse number they had merged
67:10
they hadn’t really achieved their big
67:12
size to any kind of product or effort
67:14
and they were just collapsing and going
67:16
Bank literally going bankrupt they
67:18
couldn’t hack it here to Ford and so at
67:22
the point of collapse Morgan and this
67:27
Pont du Pont family English II actually
67:30
own General Motors took over at your
67:32
mother owned it only a huge percentage
67:36
of General Motors stock basically
67:37
General Motors was was DuPont till they
67:41
were supreme court force them to buy the
67:43
best amount I can fifty to sixty but any
67:45
rate the dew point is know what to do
67:49
with this company falling apart
67:51
and they by happenstance and got a
67:53
management genius to run take it over
67:55
the head of it came out for a piece
67:57
Sloan and Sloan we constructed General
68:02
Motors and they get a not only viable
68:03
corporation but even out doing four
68:07
stones at several things first of all he
68:10
we could she we organize your own motors
68:12
into the modern Committee system in
68:14
other words Fortran Ford literally ran
68:17
the company all by himself he had a few
68:20
yes men and that was it and they ran the
68:23
whole thing and he was against the
68:24
idea of structure as essentially Sloane
68:27
to put in the whole poison ivy
68:29
centralized committee structure and most
68:31
corporations are now adopted as base in
68:33
other words you know that kind of
68:34
committee and then different lines or
68:36
independent branches each with their own
68:39
policy and then the coordinate about
68:41
center so sort of a semi decentralized
68:43
system with with flowcharts and specific
68:48
lines of responsibilities and all that
68:50
and hierarchical structure and for the
68:53
very much opposed to this and I think
68:55
there’s a speech I have it at home I
68:56
sure brought it speech of his in the
68:58
early 1920s right 1923 and saying I’m
69:00
against all this junk I’m I got
69:02
something me and before we have no lines
69:03
of command we have no structure nobody
69:05
knows what he’s gonna do though there’s
69:06
no what’s that called Job Description
69:08
everybody does everything and he 44 is
69:11
running everything with the help of a
69:12
few yes men and the problem with running
69:15
everything turned out as the Ford Motor
69:17
Company grew they’re just too much for
69:19
the guy to do but one person can’t
69:20
really handle all this stuff and I got
69:22
to be a point of inefficiency of
69:23
management I’ve got to be top-heavy so
69:28
turn out so the mission of this we has a
69:30
regular eyes accounting auditing flow
69:32
each each department with audited
69:34
and yearly goals and all the stuff we’re
69:37
all very familiar with them and
69:38
management courses and all that it’s
69:40
really slow the start of this whole
69:41
business they sort of regular eyes or
69:43
formalized structure job descriptions
69:46
auditing of each division making sure
69:48
these divisions making a profit at least
69:49
I’m making losses all our stuff begins
69:52
with General Motors it was a tremendous
69:54
improvement and managerial technique
69:56
they of course also build up a marketing
69:59
system
69:59
imitating Ford it’s one better they
70:01
started financing their own dealers in
70:03
other words we have an average dealer
70:06
wants to sell cars I think that much
70:08
money General Motors in seconds
70:09
corporations set up to finance lend
70:11
money to the dealers so this is an
70:13
important innovation in marketing and
70:15
anthing dealers also built up dealer
70:19
loyalty and all that and everything they
70:22
did again as a marketing innovation Ford
70:26
believe if you see if you have this huge
70:30
he’d be leaving a huge plant if you have
70:32
a huge plant you make it very cheap you
70:34
have a cheap car but the that’s a good
70:37
thing the bad thing is you have to have
70:38
a you know
70:38
for product so if he was stuck with a
70:41
river root trying to keep with you for
70:42
now
70:42
four million Model T Fords every year
70:45
model penises basic design and was
70:49
lovable the great car unfortunately was
70:51
boring in other words was Kristin was
70:54
old black color he was against color
70:56
they said cars have always been black
70:58
sort of old curmudgeon type and lovable
71:00
but as far therefore it’s got to be
71:02
black all the time course money it’s
71:04
either change colors and a change models
71:07
he doesn’t believe in annual model
71:08
changes the Model T is it one things
71:10
there forever and it’s it
71:12
General Motors Sloane realized that the
71:14
public wants to the public’s getting
71:15
more affluent getting more used to cars
71:17
I’d like to have changes innovations
71:19
fashion changes more different colors
71:21
different styles those General Motors
71:24
innovated in the nineteen twenties the
71:26
idea of a of annual model changes and
71:29
different colors and that fact they the
71:31
idea was more than that different colors
71:33
General Motors coin of slogan a car for
71:36
every purse in other words the the start
71:40
of the idea of different lines where if
71:42
expensive cars me and five cars and
71:44
chief card so you have a catalog like
71:47
the Cadillac surer wealthier people in
71:50
them sure rely for cheaper route what
71:53
lower-income people separate separate
71:55
ever whole structure how line structure
71:58
a car for every every sock for every
72:01
purse before it only believed in one
72:04
cheap car the Model T and that’s it
72:06
so the result of that as long as all the
72:09
forts sticking to the his tried-and-true
72:11
methods and General Motors be more
72:14
flexible but than having a small not
72:16
believing as big a bigger plant having
72:19
several plant tissue which will give
72:20
different things and then changing every
72:22
year any more flexible gentleman’s able
72:25
to come out out compete for it and
72:27
providing a better a better product in
72:29
the sense is more a bigger a bigger
72:31
bigger choice for the consumer than
72:33
changes a lot of these Marvel changes
72:35
are attacked by less than being
72:36
preferring only have people like it even
72:38
for this for free
72:39
you like that cars a little bit
72:40
different than having the same boring
72:41
car gear up here and why not what’s
72:43
wrong with that so if any race for began
72:46
to lose a lot of money Ford Motor
72:47
Company sticking all during the 1920s
72:50
for the old model T
72:52
cheaper only in the sense cheaper except
72:54
you you’re stuck with this product you
72:56
can’t change models in other words in
72:58
business you have to make choices and
72:59
one of the choices is being flexible
73:02
having a huge plant which is very low
73:04
cost but you’re stuck with it of course
73:06
enormous amount of change the motley
73:08
change the product I’m having a slightly
73:12
higher cost of a more flexible product
73:14
we can keep making changes so this is an
73:16
important choice that we made if that’s
73:18
something and you can’t sort of do it
73:19
après or you have to look and your feel
73:21
for the market anyway Ford gained lose a
73:24
lot of money for about 10 years and
73:26
General Motors again again and with that
73:28
that period of 1925 433 or something
73:31
which the trench no motors of the
73:33
dominant wanna be affirmed Ford them
73:36
became second ranked Ford always we only
73:38
be able to say when finally fourth tool
73:39
in the Powell shut down for a year or
73:42
two I think it’s about two years in
73:44
order to make these changes they reduce
73:46
the size and have different models and
73:48
try to catch up with General Motors
73:50
she’s been in almost impossible at least
73:52
they started adopting the same
73:53
techniques no annual now there’s no real
73:56
different thing portage on motors of
73:57
that and that’s that well they all have
73:59
a whole structure of cars and they
74:01
change kind of different colors and they
74:03
change models but the General Motors set
74:05
the pace for this neighborhood’s able to
74:08
attain dominance in the industry there
74:10
wasn’t a dominant because of a lot of
74:11
money to support into it the money was
74:13
almost was going down a tube those Sloan
74:15
started this whole new whole new process
74:18
home who’s thinking about automobiles
74:20
Chrysler came even of Heisler Liana go
74:23
back rub recently the my Chrysler really
74:26
only begins around 1925 and comes up
74:29
very rapidly so it becomes a major
74:30
company live rather mid 30s again
74:32
through different these modern
74:34
techniques
74:35
good management techniques good
74:37
marketing whatever in 1920 as the
74:40
country were revolting motion against
74:43
the war against the art of the outcome
74:45
of the war against Woodrow Wilson the
74:48
Republican nomination becomes important
74:50
there’s a big fight for the Republican
74:51
nomination the the guys will be
74:56
supported by the Morgans and the
74:58
Rockefellers so that Myra mostly the
75:00
Morgans but General Leonard would have
75:02
an old friend of petty Roosevelt was
75:04
this died
75:04
Lee and General would have begins the
75:08
fight for the head grass the universal
75:11
military training around nineteen
75:12
thirteen or fourteen our ready 14 really
75:15
just as the war starts he was he had the
75:17
Morgan cash a so to speak he was one of
75:22
his backers for example with Morgan’s
75:23
son-in-law and Stimpson and lodge and
75:27
Ruth all these people were Morgan
75:29
himself were backing wood the other big
75:31
candidate was governor Loudoun of
75:33
Illinois who was the was married to a
75:39
Pullman heiress and therefore have the
75:41
Pullman fortunately a sort of a personal
75:42
fortune he didn’t have much big business
75:44
backing but he had a his own money was
75:46
wife’s money that he could pour into the
75:48
married pullman so there’s a big fight
75:53
between louder than wood and the looked
75:58
as if neither I could really get the
75:59
nomination at which point a compromise
76:01
candidate was worked on and the senator
76:03
Harding Ohio that’s true
76:07
courting was a theme from Ohio as it was
76:10
a little automatically a Rockefeller
76:11
person although the equation wasn’t as
76:14
you know absolutely used to be uh
76:18
Rockefeller had moved to New York it’s
76:20
going off Ohio Republican still met
76:22
storm Rockefeller influence Horning was
76:26
this small very small town newspaper
76:27
publish on the really small town a town
76:31
a couple of thousand people and but he
76:35
was he was back of course by higher
76:37
Republican Party but it and by Boies
76:39
Penrose who was a voice of Pennsylvania
76:43
and the the Morgans finally decided he
76:45
was it was okay in other words the
76:47
George Harvey even was leaked I got
76:49
Woodrow Wilson on the road the politics
76:51
the head of Harper & Brothers and a
76:53
close friend of JP Morgan was on the
76:57
scene there he is feisty he’s got
76:58
constant touch with for Morgan partners
77:00
and they told okay Harding is okay you
77:03
know what we prefer would that will
77:04
settle for Harding and so Loudoun was
77:07
kind of erratic and we you know who
77:08
knows so anyway the Morgans then back
77:10
Harding is their second choice by the
77:15
way Harding was also a friend of judge
77:17
Geary
77:18
the head of US Steel breasteses Morgan
77:22
so there was another recommendation he
77:26
was so close to Gary the Gary gave a
77:27
Jotham what the hoardings top mistress
77:29
Harding has a kind of much of mistresses
77:32
major mistresses nan Britton and phenom
77:35
she’s looking for employments of
77:37
garriga’s or a no-show job so at any
77:40
rate so the mortgage public Harding was
77:42
fairly safe and Harding then sweeps into
77:45
the presidency Bush Democrats the
77:49
hornies cabinet was sort of that it was
77:52
sort of looking like a Morgan
77:53
Rockefeller coalition basically the
77:55
basic you know a lot of Morgan people in
77:56
the cabinet the basic deal was made I
77:58
think between Morgan or rock-hard can’t
78:00
substantiate it I think it’s pretty true
78:02
but this time oil was now very big the
78:05
big oil war continuing with meeting
78:07
Standard Oil in one hand all over the
78:08
world and the Rothschild duck shell
78:11
combination essentially the Morgan said
78:13
okay we’ll allow a crow oil foreign
78:16
policy in other words the United States
78:19
will back Santa the oil all over the
78:22
world Middle East for example just then
78:23
becoming a big oil a growing oil center
78:26
Iran and Iraq and it was then Persia in
78:28
Iraq discovered oil or the big fight
78:30
between the British and the Russians and
78:32
so forth so on who should get the oil
78:34
concession and the British United States
78:36
the British backing world got shallow
78:37
Americans back expand oil so Secretary
78:41
of State second you say was the key
78:42
foreign policy position went to a
78:44
Rockefeller person namely Charles Evans
78:47
Hughes who had run for president in 1916
78:51
and just lost it so-called progressive
78:55
lawyer New York former governor of New
78:57
York and lawyer for Standard Oil Company
78:59
top a lawyer for standard oil and also a
79:01
personal lawyer for john d rockefeller
79:03
and dealing with his estate very close
79:07
to the Rockefeller Empire trustee of the
79:10
Rockefeller Foundation after realize
79:12
these foundations are not neutrals if
79:13
you see that somebody’s oppress the
79:14
Rockefeller Foundation meeting your
79:16
rockefeller personally longer for our
79:17
ambit I mean I will not get a I will not
79:20
suddenly gets to like that sensation and
79:23
you will not either so well these jobs
79:26
have carefully selected as pawns for
79:28
their top people he was also a little
79:30
partner
79:32
Hue’s of guy named George Sherman who
79:35
was older brother Jacob Sherman was a
79:37
very close friend of john d rockefeller
79:39
well cuts is a very close waterfall a
79:43
connection there
79:45
Hughes then left after he was Secretary
79:47
of State in 1922 him he’s done with a
79:49
point of the Chief Justice of Supreme
79:51
Court she continued to be too older in
79:53
1930s so Hughes was running in the
79:58
foreign polish the approach span of our
80:01
foreign policy by the way guts of a
80:02
point in the late 1920s around nineteen
80:05
twenty eight twenty nine several books
80:07
were written forecasting an actual war
80:09
between isolates and Brett little wild
80:12
any it was a big-shot journalist then
80:14
with a book called America’s a world war
80:15
which is the war between US and Britain
80:17
they were expecting war to break out
80:18
because of the big oil conflict between
80:21
salmon well in one hand and Benton was
80:23
trying to get that sessions of the
80:24
Middle East
80:25
Britain already had concessions from
80:27
earth anglo-persian oil company and
80:30
whatever it all the other royal
80:31
dutch/shell affiliates and United States
80:34
trying to get a part of it
80:35
and I finally of course to deal with
80:37
work now United States and Britain did
80:38
not go to war but first many years their
80:40
1920 was actually serious concern that
80:42
might a war my breakout secretary the
80:45
Treasury was figure who was 15 of each
80:52
secretary secretary treasurer all going
80:54
the 20 Andrew Mellon the first time I
80:56
got think of her a top tycoon actually
80:59
takes over it’s an important political
81:00
post
81:02
memo of course is paranthesis Mellon and
81:05
Mel as a multi-millionaire almost
81:07
billionaire I would say Binney an heir
81:09
family still is which virtually owns
81:12
Pittsburgh and everything in it melons
81:15
sexually own Alcoa and go foil and
81:18
Mellon Bank and God knows what else I
81:21
mean this various other race other
81:24
business firms coppers company
81:28
Pittsburgh consolidated coal and got a
81:31
whole bunch of other thing anyway the
81:33
melons the melons really parent presses
81:35
melon we have to realize none of the
81:36
Morgans have been a lie for quite a
81:38
while when when Pittsburgh went melon no
81:42
I mean Morgan when when Cardian Frick
81:44
or emerged to become US Steel Melander
81:48
involved in that we have a melon Morgan
81:51
Alliance there still is a melon for the
81:54
big melon family and a melon foundations
81:56
and everything else I’m the Secretary of
81:59
Treasury appointed by melon with s
82:02
Parker Gilbert later became a Morgan
82:06
partner always look of course for Morgan
82:08
partners so this symbolizes the Mellon
82:11
Morgan Alliance because the Rockefellers
82:16
were it’s sort of porcelain as a
82:17
situation our cause were willingness the
82:19
Morgans actually after all dominant in
82:20
the finance and we’re willing to have
82:22
the Morgans take first place in the
82:24
Treasury going they get the first shot
82:26
important shot informed foreign policy
82:29
Attorney General with Ohio crony with
82:33
various connections of Harding the
82:36
Secretary of War was a Morgan persons of
82:38
Massachusetts of the partner of vice
82:42
president of First National Bank of
82:43
Boston which of course was Boston bomb
82:45
and Morgan Secretary the Navy was again
82:48
with a guy from Michigan who was close
82:50
to the Packard Motor Company Detroit
82:52
lawyer is Assistant Secretary of the
82:54
Navy was Theodore Roosevelt jr. Summer
82:57
Theater level senior Morgan person of
82:59
course Secretary of Labor that’s kind of
83:03
cute this Avery Labor’s running James
83:04
Jay Davis cute because Davis even though
83:08
he had once it’s been a union member you
83:10
won’t time before and the amalgamated
83:13
steel were communion or something was
83:15
now a businessman and banker in
83:20
Pittsburgh and therefore it was a melon
83:21
person so so like giving Mellon to
83:24
Camden post and they were Union Park
83:26
whole po2 they’re not regard Davis is a
83:29
the union labor person
83:34
secretary interior was an a buddy of
83:36
another buddy of horny from New Mexico
83:39
ambassador Great Britain was George
83:41
Harvey the God the Morgan representative
83:43
hood finally pushing for Harding came
83:46
payoff for the method of Great Britain
83:50
etc the one of the interesting things
83:55
that happened in Harding administration
83:57
the so called
83:58
Dome scandal which I’m not gonna go into
84:00
it a lot of publicity wasn’t really that
84:02
white home but I mean why it was a
84:03
situation where oil government oil lamp
84:06
reached out to Harry Sinclair who bribed
84:10
the Secretary of Interior it sucker but
84:12
the interesting thing about is
84:13
essentially that was a Morgan ploy
84:15
behind stickler with a Morgan
84:18
interesting studies were made in this
84:20
and course Sinclair was a competitor to
84:24
Standard Oil and this is sort of a
84:25
Morgan ploy and then I think the I think
84:29
the exposure and the hysteria about
84:30
t-bar was essentially a a walker
84:32
follower of product I can’t prove that
84:36
it hasn’t been studied for that reason
84:38
when Ashley the Soviet Union took over
84:41
as I won and took over they’re willing
84:43
to make deals with American and foreign
84:45
capitalists that question who should get
84:47
the Baku L concessions a lot of oil land
84:50
and Russia caucuses and both Rockefeller
84:54
and Sinclair was an independent oil
84:56
personally we’re competing for a
84:58
concession six I finally got it
84:59
and Walker cause was feeling bitter of
85:01
this and they I think portal I think
85:04
that p5 dome exposure the whole less
85:05
theory about the Bible congressional
85:07
investigation of the press is
85:09
essentially a Rockefeller ploy to smash
85:10
the Morgans and Sinclair and that and
85:13
that particular fight a successful one
85:17
the bull horning dies suddenly in office
85:21
1923 like attention is whenever a
85:24
president died summation least the
85:25
investigated
85:26
that’s my contention my right yeah we
85:31
certainly people do die suddenly in
85:32
financial cause was one of President I
85:34
something should be listed with a little
85:35
more depth than usual there are some
85:38
contention that he was bumped off
85:40
Harding one contention is he was
85:43
poisoned by his wife his wife had
85:45
several grievances first of all he was
85:47
sleeping around a lot already indicate
85:50
second was a that the Teapot Dome
85:52
scandal is coming out he himself was not
85:54
a crook he was a poker playing friend of
85:57
crooks and a little bit like Koch I
86:00
guess it’s not directly a crook but
86:01
anyway the scandal was coming at and she
86:03
didn’t want to name blackened plus the
86:05
fact that she was resentful anyway
86:09
anyway their architecture
86:11
poison I think she did what I’m saying
86:13
is it should be these have been
86:14
investigated obviously it wasn’t the guy
86:17
was a Secret Service agent wrote a book
86:19
a few years later claiming that she
86:20
poisoned them but anyway that books as
86:22
maybe in any rate once again a
86:24
Rockefeller persons died suddenly in
86:26
office and I morgan person succeeds in
86:28
this is Teddy Roosevelt suddenly
86:31
succeeded McKinley Harding was a
86:34
succeeded by Calvin Coolidge vice
86:37
president what Coolidge brought whether
86:39
it was a totally Morgan administration
86:41
in other words Rockefellers
86:42
administration was a combination
86:43
Harding’s was a coalition between
86:46
alcohol and Morgan Coolidge brings with
86:49
him a pure Morgan administration
86:51
Coolidge himself and usually considered
86:53
to be silent Cal and quiet of the
86:56
governor of Massachusetts and he crack
86:58
down on a police strike he arrested
87:00
Thompson one of the strike the real
87:02
important thing about Coolidge however
87:04
he wasn’t attorney and here in western
87:05
Massachusetts truly the small head of a
87:09
small savings bank an attorney for the
87:10
key thing is he was he had many top
87:13
backers his cousin for example was for
87:16
Coolidge’s T Jefferson Coolidge one of
87:19
those cousin of top backer was a big
87:22
shot a United Fruit Company in Boston
87:24
and in with a Morgan Boston Financial
87:26
Group other words his head of United
87:31
Fruit Old Colony Bank and will last
87:34
Jefferson Coolidge well-known pop
87:37
financier was a cousin of Calvin so the
87:41
fact that Calvin himself came from a
87:42
small town I wasn’t massachusett of mean
87:44
much point in what our family
87:46
connections his major mentor he had also
87:48
had two other mentor this you know this
87:50
one was cousin his major mentors guy
87:54
named
87:56
W Marie Craine who is the governor of
87:59
Massachusetts I think the Congress makes
88:02
he’d make cars in Massachusetts and the
88:04
chairman of the Republican Party
88:05
Massachusetts a paper manufacturer and
88:11
also a leading Morgan persons in
88:14
Massachusetts he was a director of AT&T;
88:16
which is a Morgan company reckon
88:17
telephone telegraph and basically a
88:20
Boston Morgan person
88:22
hacking Coolidge’s first act as
88:24
president was to
88:25
we cranes top assistant William Butler
88:27
be head of the Republican National
88:28
Committee I was as direct the median pay
88:31
off the crane support his other top
88:34
backer is none other than white morrow
88:35
whose friend of Coolidge and Morgan
88:38
partner so we have all this with all
88:44
this backing silent Cal Coolidge we can
88:46
ensure that we can be sure to the fact
88:48
that Coolidge administration will be
88:49
morganite and indeed his whole
88:55
administration was Tom Morgan his
88:56
secretary of state when Hughes resign as
88:59
Secretary of State in 1925 year after
89:02
actually just about one who was elected
89:05
by shouldn’t twenty four and he comes in
89:07
and vice president they get so like the
89:08
1924 in his own right
89:18
you

Murray N. Rothbard Quotes

Unlike the days of the gold standard, it is impossible for the Federal Reserve to go bankrupt; it holds the legal monopoly of counterfeiting (of creating money out of thin air) in the entire country.Murray Rothbardhttp://www.readrothbard.com/quotes… (next quote)